Why some foreign tech giants scope out Vietnam but invest in other countries

The fact that some major tech giants visit Vietnam but invest in other countries is normal, said Deputy Minister of Planning and Investment Do Thanh Trung on Saturday.

Speaking at the government’s regular press meeting, the official stated that in recent times, Vietnam has been trying hard to attract foreign investors, especially in the fields of science-technology and semiconductors.

According to Trung, investment by foreign businesses depends on many factors. Objective factors include the geopolitical and economic situation in the world, the region, and Vietnam; investment trends and global supply chain shifts; and security issues.

Subjective factors come from businesses and investors, including their investment strategies and development goals, the suitability of each location and each region, and resources, he said.

The final factor is Vietnam's readiness to attract large global tech corporations, and this includes regulations, infrastructure, and human resources. This is what we need to focus on, he added.

In terms of regulations, Trung said Vietnam is perfecting its legal system, mechanisms and policies to improve the business and investment environment. In particular, the country is offering attractive investment incentives for tech companies and corporations, including the semiconductor chip industry. High-tech projects in this field are offered the highest incentives within the framework of Vietnamese law.

Regarding infrastructure, Vietnam boasts synchronous road, waterway and aviation infrastructure serving business production. Most recently, the National Power Development Plan VIII (PDP VIII) was approved by the prime minister, prioritizing stable power supply for investment projects and moving towards sustainable energy development.

“In addition, Vietnam needs to focus on developing high-tech parks, especially the National Innovation Center, creating the best conditions for foreign corporations to invest in the country,” he noted.

Vietnam also has an abundant workforce in the fields of engineering and technology suitable for the semiconductor industry, Trung said, adding that the country has a system of agencies with training and research capacity, as well as prestigious universities.

To carry out the tasks assigned by the government, the Ministry of Planning and Investment is building a human resource development project for the semiconductor industry which aims to provide 50,000 high-quality personnel for the industry by 2030, he added.

Vietnam boasts a favorable geographical location for foreign investors, and the Vietnamese government is determined to pursue and develop the semiconductor chip industry. The country is developing a strategy to develop the semiconductor industry and provide maximum support for foreign investors, especially those from the U.S., to invest in the semiconductor industry supply chain in Vietnam.

The country has been attracting more and more tech giants. In the semiconductor industry, many large corporations from Japan, South Korea, Taiwan, and especially the U.S. are now investing in Vietnam. Among the American investors are Intel and Amkor in the field of packaging and testing; Marvell, Qorvo and Qualcomm in design; and Synopsys and Cadence in chip design tools.

Recently, leaders of NVIDIA, a U.S. based pioneer in graphics processing unit-accelerated computing, have visited Vietnam and committed to cooperation in AI and semiconductors. The corporation will help build supercomputing centers in Vietnam, train AI and semiconductor industry human resources, and develop an ecosystem for AI research and development and startups.